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Overview of Florida’s DSM Accomplishments and Goal Setting Process

Overview of Florida’s DSM Accomplishments and Goal Setting Process. Presentation to the: Florida Public Service Commission Workshop on Energy Efficiency Initiatives November 29, 2007 Tom Ballinger Division of Economic Regulation Florida Public Service Commission. Three Components of Peak Load.

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Overview of Florida’s DSM Accomplishments and Goal Setting Process

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  1. Overview of Florida’s DSM Accomplishments and Goal Setting Process Presentation to the:Florida Public Service CommissionWorkshop on Energy Efficiency InitiativesNovember 29, 2007Tom BallingerDivision of Economic RegulationFlorida Public Service Commission

  2. Three Components of Peak Load • New customers + Increase in average house size + Increase in appliance saturation - Demand-side management programs = peak load that must be served. • As long as Florida continues to grow, utilities must serve all who arrive. Currently, approximately 1,000 new people each day. • Since 1986, the average house size has increased approximately 30%. • Since 1986, the use of some appliances (i.e. microwave ovens, VCRs, dishwashers, and personal computers) has more than doubled. • As growth continues, energy efficiency becomes more important. • Utilities should continue to: • educate new customers on the benefits of energy efficiency, • provide input to possible improvements to building code and appliance efficiency standards, and • explore new energy efficiency/DSM measures and programs.

  3. Florida Energy Efficiency and Conservation Act (FEECA)Section 366.80-.82, Florida Statutes • Enacted in 1980 • Emphasis on reducing the growth rates of peak demand, reducing and controlling the growth rates of electricity consumption • Required the PSC to adopt goals related to the conservation of electric energy • Authorized the PSC to require each utility to develop plans and implement cost-effective programs for increasing energy efficiency and conservation within its service area • Provides for recovery of program costs

  4. Florida Energy Efficiency and Conservation Act (FEECA) • Amended in 1989 • Size threshold – only utilities with sales > 500 gWh • 12 utilities comprising 94% of sales were subject to FEECA • Amended in 1996 • Size threshold for municipals and cooperatives with sales of 2,000 gWh or greater on July 1, 1993 • Utilities subject to FEECA: FPL, PEF, TECO, Gulf, FPUC, JEA, OUC • Comprises 86% of sales

  5. PSC Implementation of FEECA • Rules requiring numeric goals for each FEECA utility • Annual winter, summer demand and energy reduction goals • Goals revised every five years • After goals are approved, DSM plans and programs submitted for review • Programs must be cost-effective • Exception – energy audits required by FEECA • Energy Conservation Cost Recovery (ECCR) Clause • An annual public hearing is conducted to review IOU program costs and set a rate applied to all customer bills

  6. DSM Program AchievementsImpact of DSM on Winter Peak DemandState of Florida

  7. Florida’s Electric IndustryInvestor-Owned Electric Utility Conservation Expenses

  8. Residential DSM Program Bill Impacts2006

  9. Timelines for Past Goal Setting Proceedings 1995 Goals2000 Goals2005 Goals Workshop – 10/1993 10/1997& 1/1998 04/2004 Goals Filed – 02/1994 02/1999 06/2004 Hearing – 06/1994 (7days) 08/1999 (Stipulation) Agenda – 04/1995 02/2005 (PAA) Total 19 months 23 months 11 months * Plan to start 2010 Goal proceeding in late spring 2008

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